Defining the Business Impact of Performance Management…and the True Cost of Status Quo

Dedicated to serving small and mid-sized businesses, PiiQ by Cornerstone is part of the product portfolio of Cornerstone OnDemand, the global leader in talent management with over 17 years of continuous growth. As the talent management partner of choice to some of the world’s most successful companies, Cornerstone is dedicated to providing organizations of all sizes with the ability to optimize the way they manage their most important asset – their people.

In today’s marketplace, companies leveraging a leading performance management solution are outpacing the competition in every category, from productivity to employee engagement and retention, to overall profitability. Accordingly, sticking with the “status quo” of manual reviews significantly limits the potential of any business.

FIND OUT HOW PIIQ IMPACTS SUCCESS:

PRODUCTIVITY

Are You Identifying Costly, Unproductive Employees? Your team is lean and interdependent. Don’t fall victim to unproductive employees weighing down the output of your team. Identify employees who aren’t achieving their goals and get the team back on track quickly.

Unproductive, disengaged employees cost U.S. companies nearly $600 billion per year.1

Are Your Employees’ Goals Aligned or Moving in Opposite Directions If your company isn’t rowing in the same direction, you can’t make progress. You need to ensure all goals are aligned towards your company objectives.

By establishing alignment throughout the organization, each employee gains a sense of ownership and accountability, resulting in an energized workforce with a clear and consistent vision.2

Are HR & Managers Wasting Hours on Manual Performance Tasks That Could Otherwise Be Spent on More Productive Tasks?

To reduce inefficiencies, equip HR and your managers with modern performance management tools that eliminate burdensome, manual performance processes.

The average manager spends more than 200 hours a year on activities related to performance reviews, but a staggering 90% of HR leaders feel the process does not yield accurate information.3

EMPLOYEE ENGAGEMENT

Is Your Performance Management Process Engaging or Detracting Your Employees?Disengaged employees are not only unhappy and unproductive at work, but also liable to spread negativity to coworkers, while engaged employees work harder and smarter.

Numerous studies show that employee engagement is one of the most critical drivers of financial performance:

COMPANIES WITH HIGH ENGAGEMENT EXPERIENCE4

HIGHER REVENUES

65% reduction in turnover

37% lower absenteeism

18% increase in productivity

16% higher profitability

High performers only comprise 5%

of your workforce but produce 26%

of your output. Replacing them is

incredibly expensive, to the tune of

up to 3.5 times their salary.5

EMPLOYEE RETENTION

Are You Leveraging Performance Reviews to Retain Your Top Performers?While paper reviews are static, archaic documents that don’t allow for benchmarking, performance review tools not only facilitate individual performance benchmarking, but succession planning as well. When employees don’t see a connection between performance and their career progression, they leave- and now you’re not only one resource down, but you’ve entered into the costly process of finding a backfill.

EMPLOYEE DEVELOPMENT

Are You Transforming Performance Conversations Into Learning Opportunities To Drive Employee Development?Providing development opportunities to your employees doesn’t have to be costly- in fact, companies across all industries that invest in learning and development experience increases in their profitability.

Organizations that implement effective talent management processes are 109% more capable of retaining high performers, and are 144% better at

planning for future talent needs.6

Employees under the age of 25

rate professional development

as their number one driver of

engagement, and this is the

number two priority for workers

up to age 35.7

ORGANIZATIONS WITH STRONG LEARNING CULTURE ARE:8

30-50% higher engagement & retention rates

92% more likely to develop novel products & processes

56% more likely to be the first to market their products & services

52% more productive

17% more profitable than their peers

1. https://blogs.technet.microsoft.com/mediumbusiness/2013/03/18/are-you-paying-for-unproductive-employees/ 2. https://trainingmag.com/content/establishing-alignment-employee-performance-management3. http://www.personneltoday.com/hr/end-annual-appraisal-whats-next-performance-management/4. https://www.paycor.com/resource-center/the-link-between-performance-management-and-employee-engagement5. https://www.eremedia.com/ere/top-performers-produce-4x-more-output-and-higher-quality-referrals/6. http://blog.bersin.com/the-amazing-business-impact-of-superior-talent-management/7. https://dupress.deloitte.com/dup-us-en/deloitte-review/issue-16/employee-engagement-strategies.html8. https://dupress.deloitte.com/dup-us-en/deloitte-review/issue-16/employee-engagement-strategies.html#endnote-45

COMPLIANCE

Corporate compliance is crucial to protecting your business and mitigating the risk of extremely costly penalties that could also result in dissolution. Depending on your industry and region, you may be responsible for meeting strict compliance standards and require an automated system to manage and track organization-wide compliance.

ROI of PiiQPiiQ enables you to foster productive, aligned, engaged, and loyal employees that directly contribute to improving your company’s bottom-line. What organizations often overlook is the real savings from hidden costs of employee turnover.

What does this mean for your business?When factoring in account employee turnover costs, average salary, and the cost to hire for companies like yours, PiiQ could deliver over 250% in ROI.

*This figure is based on voluntary employee turnover rates for a company with 100 employees and an average employee salary of $50K.

Cornerstone is committed to helping small to medium-sized businesses develop an engaged workforce to drive higher performance and revenue. smb.cornerstoneondemand.com

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